Abbott Laboratories (NYSE: ABT) announced that it swung to a profit in the fourth quarter from year-earlier results that were reduced by charges for acquisition costs. Abbott's drugs Humira, Depakote, TriCor, and Kaletra all posted double-digit sales gains.
For the quarter ending December 31, Abbott earned $1.2 billion, or 77 cents per share, compared with a loss of $476.2 million, or 31 cents per share, in the same period a year ago. Revenue rose to $7.22 billion from $6.22 billion, exceeding the $6.97 billion estimated by analysts polled by Thomson Financial.
Adjusted earnings, excluding certain items, rose to 93 cents per share, a penny better than analysts' consensus estimate. For the full year, Abbott earned $3.6 billion, or $2.31 a share, compared with $1.72 billion, or $1.12 a share, in 2006. Revenue increased 15% to $25.9 billion from $22.5 billion.
Shares were down about 2% to 56.20 by midday on Wednesday.
For more news on Abbott Labs, see BloggingStocks' Abbott coverage.
WellPoint Inc. (NYSE: WLP), which operates Blue Cross and Blue Shield plans in several states, reported that its fourth-quarter profit rose 7% to $859.1 million, or $1.51 per share, from $801.1 million, or $1.28 per share, in the same quarter of the previous year. Revenue climbed 7% to $15.56 billion from $14.58 billion a year ago, helped by a rise in premiums. Analysts surveyed by Thomson Financial had expected a profit of $1.51 per share on revenue of $15.26 billion.
For the full year, WellPoint reported earnings of $3.3 billion, or $5.56 per share, on total revenue of $61 billion, which was in line with analysts' earnings expectations. WellPoint also reaffirmed its outlook for fiscal 2008 earnings per share of $6.41, and said it will buy back more than $4 billion worth of shares during the year.
The share price fell about 5% in morning trading after analysts expressed concerns over an 82.9% rise in WellPoint's benefit expense ratio. The ratio represents the percentage of revenue spent on medical expenses.
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